3 rd Quarter Revenue. October 20, 2011

Transcription

1 3 rd Quarter Revenue October 20, 2011

2 DISCLAIMER This presentation contains forward-looking statements. The use of the words "aim(s)," "expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)" and similar expressions in this presentation are intended to identify those statements as forward-looking. Forwardlooking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Other than as required by applicable securities laws, Publicis Groupe undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. Publicis Groupe urges you to review and consider carefully the various disclosures it has made concerning the factors that may affect its business, including the disclosures made under the caption "Risk Factors" in the 2010 Registration Document filed with the French financial markets authority (AMF). 2

3 Q Revenue (EUR million) 1,419 Organic Growth* +6.4% *Q organic growth = +9.2% 3

4 REVENUE BY GEOGRAPHY 3 rd Quarter 2011 (EUR million) Q Q Var vs 2010 Organic Growth Q Europe % + 6.5% North America % + 5.5% Asia Pacific % +7.6% Latin America % +13.1% Middle East & Africa % +2.8% Total 1,419 1, % +6.4% 4

5 SEPTEMBER 30, 2011 YTD Revenue (EUR million) 4,118 Organic Growth +6.9% 5

6 REVENUE BY GEOGRAPHY September 30, YTD (EUR million) Sept YTD Sept YTD Var vs 2010 Organic Growth YTD 2011 Europe 1,322 1, % +8.2% North America 1,957 1, % +6.3% Asia Pacific % +4.9% Latin America % +8.5% Middle East & Africa % +7.0% Total 4,118 3, % +6.9% 6

7 ORGANIC GROWTH BY COUNTRY September 30, YTD Organic Growth Rate Above 10% From 5 to 10% September 30, YTD Arab Emirates, Argentina, France, Germany, Malaysia, Russia, Singapore, Venezuela Brazil, Canada, Greater China, Spain, USA From 0 to 5% India, Italy, Korea, Sweden, Switzerland, UK Below 0% Australia, Belgium, Greece, Japan, Poland, Portugal 7

8 REVENUE BY ACTIVITY September 30, YTD Media 19% vs 19% in 2010 Advertising 31% vs 33% in 2010 SAMS* 50% vs 48% in 2010 *SAMS including 100% Digital 8

9 DIGITAL STRATEGY EXECUTION ON TIME September YTD September YTD Digital (% of Group Revenue) from 28.7% to 30.2% Organic Growth : - H : +12.2% - Q : +12.9% - YTD 2011 : +12.5% 9

10 DIGITAL NERVE CENTER NEW STEPS Extending partnerships across Big 5: agreement signed with AOL to boost video online advertising with creation of new formats (The Pool) Launch of the Tablet Lane (The Pool): industry collaboration to determine first ad format for US on tablets - Largest effort of Pool to date The Nerve Center's Audience on Demand extensions into Video (AODv) and Social (AODs) continue positively. Video in particular leveraged by our largest clients and the Facebook API in high demand 10

11 EMERGING MARKETS STRATEGY EXECUTION ON TIME September YTD September YTD Emerging markets (% of Group Revenue) from 22.3% to 23.7% Organic Growth : - H : 5.5% - Q : 7.5% - YTD 2011 : 6.2% Of which Greater China: - H : 9.2 % - Q : 10.1% - YTD 2011 : 9.6 % 11

12 NET NEW BUSINESS September 30, YTD USD 4.1 bn 12

13 NET NEW BUSINESS September 30, YTD 13

14 NET DEBT September 30, YTD 969 (EUR million) Acquisitions * Acquisitions * Sept. 30, 2010 Sept. 30, 2011 Net Debt Sept Sept. 30, 2011 Average Net Debt *excluding acquisitions 14

15 MAIN ACQUISITIONS IN 2011 Activity sector Name Country Expertise Digital Emerging markets Other Rosetta Big Fuel US US Digital Consulting Expertise Social Network fully dedicated 2011 estimated revenue (12 month) 160 M 21 M Headcount 1, Genedigi China PR 33 M 414 DPZ Brazil Ads 35 M 274 Talent Brazil Ads 43 M 234 GP7 Brazil Ads 5 M 34 Watermelon India Healthcare 1 M 40 ICL Taiwan PR 2 M 27 Schwartz US PR 19 M 186 Chemistry UK Ads 17 M

16 LIQUIDITY September 30, YTD (EUR million) Total Drawn Available Committed Facilities: 364-day revolving credit facilities year revolving credit facilities year syndicated facility (Club Deal) (1) 1,200-1,200 Total Committed Facilities 1,855-1,855 Cash and Marketable Securities 1,273-1,273 Total Liquidity 3,128-3,128 Groupe other uncommitted Facilities (1) As of September 30, Publicis Groupe signed a new EUR 1.2 billion 5-year syndicated credit facility on July 13 th, 2011, which replaces syndicated credit facility dated 17 December

17 Outlook 17

18 CONTEXT Financial turmoil (sovereign debt risks) Uncertainties Slower economic growth 18

19 ZenithOptimedia Major Media Ad Forecasts for 2011 and 2012, current prices (%) July 2011 Forecast Oct Forecast July 2011 Forecast Oct Forecast Worldwide +4.1% +3.6% +5.9% +5.3% Slowdown in forecasts in october 2011 Source: ZenithOptimedia 19

20 ORGANIC GROWTH Publicis outperfoms its peers- Challenging Comparables in % IPG Omnicom WPP Publicis Groupe 20

21 OUTLOOK 2011 Growth Market expects slower growth in Q4 Q4 unfavorable comp s (+12.5% organic growth rate in Q4 2010) FY 2011 organic growth above market despite higher comparables 21

22 OUTLOOK 2011 Results Operating margin 2011 : ball park 2011 diluted EPS increase 22

23 CONCLUSION GROWTH & MARGIN Ambitious objectives in emerging markets Indispensable and pioneering player in digital - Best sector Operating Margin - Shared services and platforms Operational excellence - No silos no solos - Transversal Executive Committee 23

24 3 rd Quarter Revenue October 20, 2011

25 Appendix 25

26 ORGANIC GROWTH BY COUNTRY 3 rd Quarter 2011 Organic Growth Rate Q Above 10% From 5 to 10% Argentina, Germany, Greater China, India, Korea, Malaysia, Singapore, Spain, Switzerland Brazil, France, Philippines, Russia, Turkey, USA From 0 to 5% Canada, Japan, Sweden, UK Below 0% Arab Emirates, Australia, Belgium, Greece, Italy, Portugal 26

27 REVENUE BY GEOGRAPHY September 30, 2011 YTD 48% 32% 12% 6% 2% 27

28 REVENUE BY SECTOR 5% 5% 3% FMCG TMT 5% 5% 4% 10% 38% Healthcare Automotive 10% 36% 12% Financial 13% 13% 14% Retail Leisure/Energy/Luxury 13% 14% Others September YTD September YTD Stable and balanced portfolio Based on 1317 clients representing 86% of total group revenue 28

29 PART OF ANALOG AND DIGITAL REVENUES BY SECTOR Analog Digital Based on 1317 clients representing 86% of total group revenue 29

30 DIGITAL Digital revenue represents 30.2% of total revenue - September 30, 2011 YTD FMCG 5.8% TMT 4.9% Financial 4.7% Other sectors Automotive 3.9% 4.6% 30.2 % of Groupe Total revenue Healthcare 3.6% Leisure / Luxury / Energy 1.7% Retail 1.0% Based on 1317 clients representing 86% of total group revenue 30

31 REVENUE AND ORGANIC GROWTH CALCULATION September 30, 2011 Year to date (EUR million) H1 Q3 Sept. YTD 2010 Revenue 2,538 1,320 3,858 Currency impact (58) (68) (126) 2010 Revenue at 2011 exchange Rate (a) 2,480 1,252 3,732 Currency impact (EUR million) H1 Q3 Sept. YTD GBP 0 (5) (5) USD (67) (56) (123) Others 9 (7) 2 Total (58) (68) (126) 2011 Revenue before impact of acquisitions (1) (b) 2,656 1,333 3,989 Revenue from acquisitions (1) Revenue 2,699 1,419 4,118 Organic Growth (b/a) +7.1% +6.4% +6.9% (1) Acquisitions (In-Sync, Resolute, AG2, G4, Amazon, Publicis Romania, 20:20, EastWei, Casablanca, Digital District, Publicis healthcare consulting, Frequence Medicale, C4L, Kitkatt Nohr, Airlock, Holler, Chemistry, Talent, ICL, GP7, Watermelon, S&S South Africa, Genedigi Group, Dreams, Rosetta Marketing Group, Big Fuel, LB Zurich Spillman/Felser, DPZ Group, Nuatt, Schwartz) net of disposals. Exchange rate Sept. 30, 2011 : 1 USD = EUR 1 GBP = EUR 31

32 REVENUE BY GEOGRAPHY IN USD September 30, YTD (USD million) Sept. 30, YTD Sept. 30, YTD Var vs 2010 Europe 1,858 1, % North America 2,751 2, % Asia Pacific % Latin America % Middle East & Africa % Total 5,788 5, % All entities translated into US dollar using the following exchange rates: Sept. 30, 2010: 1 USD = EUR Sept. 30, 2011: 1 USD = EUR 32

33 GROSS DEBT SPLIT BY MATURITY September 30, 2011 (EUR million) Total Oct Sep Oct Sep Oct Sep Oct Sep Oct Sep Oct onwards Oceane 2018* Oceane Eurobond 2012** Eurobond 2015** Oranes Earn-out / Buyout Other debt** Total gross debt 2, No Covenants * Put Option in January 2014 ** Including fair value of associated derivatives 33

34 NET DEBT SPLIT BY CURRENCY September 30, 2011 (EUR million) Total EURO USD GBP Others Oceane Oceane Eurobond 2012* Eurobond 2015* Orane Earn-out / Buy-out Other debt* Total gross debt 2,242 1, Cash and marketable securities (1,273) (1,196) 688 (109) (656) Net debt (90) (281) * Including fair values of associated derivatives 34

35 NET DEBT SPLIT BY RATE (after interest rate swap) September 30, 2011 (EUR million) Total Earn-out / Buy-out Fixed Rate Variable Rate Oceane Oceane Eurobond 2012* Eurobond 2015* Orane Other debt* Total gross debt excl. Earn-out / Buy-out Earn-out / Buy-out , Cash and marketable securities (1,273) (1,273) Net debt (320) * Including fair values of associated derivatives 35